My Great Plan C.

R1chP · 21 September 2018 at 4:09PM

Hi folks, long time lurker starting my MFW diary to motivate myself if this plan fails it will be Plan D, overpay as much as I can to clear mortgage and reduce hours or go part time by the time I'm 60.

I'm 57, single bloke with no dependants.

Plan A was to walk out of job and force myself to look for another (but don't want to put my house at risk).

Plan B is bite the bullet and carry on overpaying £100 a month.

Plan C is cash in an old private pension to clear mortgage and go on a 3 day week.
I have an appointment with Pension wise next week to see if I can draw down some money over two tax years and avoid 40% tax hit and be mortgage free by April 2019:T.

Outstanding mortgage is £38k and 14 years left to pay.

I started a thread in "Pensions section" with a bit more detail.

https://forums.moneysavingexpert.com/showthread.php?t=5896005

My "to do list" before I reduce hours is:

[STRIKE]Find an IFA.[/STRIKE]

[STRIKE]New Sofa.
[/STRIKE]
[STRIKE]Pay off mortgage.[/STRIKE]

Decorate and carpet Living Room and Hall/Stairs.

[STRIKE]Replace 2 garden sheds with a workshop shed.[/STRIKE]

Update my Will.

Bye for now.

R1chP · 25 September 2018 at 4:20PM

A reminder to myself:

According to the Overpayment Calculator I will have saved £10k in interest by over paying £100 a month.
£16k saved with Plan C.:j

doingitanyway · 30 September 2018 at 2:32PM

Wishing you well. I've just gone down to a 4 day week and it makes a big difference

I like your plan C. Life is short. Go for it.

R1chP · 9 October 2018 at 9:49PM

Thanks doingitanyway.

Sofa ordered.

Booked a free hour appointment with a local IFA.

[Deleted User] · 10 October 2018 at 9:22AM

Good luck, I am in a similar situation in that I was hoping to start a job that took me neatly into paying off the mortgage and retirement but 2 years in and I hate it.

I am 4 yrs away from my pension and would be happy with a nicer job so am looking. If I find the next one is pants aswell I will look to sell an asset to tide me over until my pension matures.

I plan to do a lot of things in retirement and selling assets is not what I want to do nor is using my pension to clear the mortgage tbh but neither is staying in a horrible job part of the plan either.

Escapar2020 · 28 October 2018 at 10:12PM

Exciting times, enjoy the journey!

R1chP · 21 November 2018 at 5:26PM

Seen IFA.
The advice is pay off chunk of mortgage with the tax free portion of old pension and most of my savings leaving about £10k to pay off over a year or two.
He will set up a new flexi draw down pension with what is left. So I will still have an emergency/shed fund. :cool:

beanielou · 21 November 2018 at 7:57PM

R1chP wrote: »

Seen IFA.
The advice is pay off chunk of mortgage with the tax free portion of old pension and most of my savings leaving about £10k to pay off over a year or two.
He will set up a new flexi draw down pension with what is left. So I will still have an emergency/shed fund. :cool:

Sounds ok

R1chP · 12 April 2019 at 9:19PM

Flexi-Access Drawdown pension has now been set up by IFA.

£19k tax free lump sum transferred to my bank account today, so I rang up The Halifax and made a £22k mortgage overpayment :eek: bringing my outstanding mortgage to £14k.

I've transferred £8k from NS&I Direct ISA back to my Current Account to use as overpayment when it appears, so by Monday my mortgage should be down to £6k:j .

Hopefully mortgage free by this time next year.

R1chP · 15 April 2019 at 4:24PM

Paid the £8k off via online banking, despite the lady on the phone saying Friday's £22k payment would be instant, it still hasn't left my account yet.

Can't wait to see my mortgage account updated. Fingers crossed until then.

upwards · 15 April 2019 at 7:28PM

bowser well done!

My Great Plan C.

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